Over the past two years, the Development Facilitation Program has expanded significantly and is now firmly on the industry’s radar as an alternative to the traditional Council Planning Permit pathway.
We look back on how the program has evolved, reflect on the lessons learned, celebrate some project wins that have used the pathway, and ponder what may come next.
The Development Facilitation Program (DFP) was expanded following the announcement of the Victorian Housing Statement in 2023. It seeks to provide ‘expedited planning pathways and facilitation services for eligible projects that inject investment into the Victorian economy, keep people in jobs, and create homes for people’. The program allows for eligible applications to be lodged directly with the Minister for Planning, rather than progressing through the standard Council process.
Under the DFP provisions, the Minister for Planning, as the Responsible Authority, can waive or vary mandatory planning scheme requirements including maximum building heights, setbacks and garden area. Concessions can also be applied for certain application requirements and Section 2 conditional requirements.
While decisions made by the Minister for Planning under the DFP cannot be appealed to the Victorian Civil and Administrative Tribunal (VCAT), public notice and referral requirements still apply. This balance of certainty and transparency is a key reason the pathway is generating growing interest.
Since the DFP’s expansion through Planning Scheme Amendment VC242 (2023), it has evolved to include three distinct pathways. These are: Clause 53.22 (significant economic development), Clause 53.23 (significant residential development with affordable housing) and Clause 53.25 (Great Design Fast Track).
Clause 53.22 – Significant Economic Development
Clause 53.22 provides a fast-track permit pathway for developments that deliver substantial economic value and public benefit to Victoria. Applications can be considered under three eligibility categories.
Clause 53.23 – Significant Residential Development with Affordable Housing
Clause 53.23 provides a fast-track approval pathway for significant residential developments that include an affordable housing component. Affordable housing may be delivered as a proportion of total dwellings (typically 10%) or as a cash contribution based on total development cost (typically 3%), secured through a Section 173 Agreement. Three eligibility criteria apply:
Clause 53.25 (Great Design Fast Track)
The Great Design Fast Track (GDFT) pathway is managed jointly by the DFP and the Office of the Victorian Government Architect (OVGA). GDFT allows for an uplift in development outcomes across multiple zones (noting that the level of uplift varies by zone) and allows variation of mandatory controls.
Eligibility is generally reserved for developments of at least 8 dwellings, 2 – 8 storeys, and developments achieving excellence with regards to the Nationwide House Energy Rating Scheme (NatHERS). Projects must receive written OVGA approval through pre-application process confirming the application meets the relevant requirements and design principles to qualify as ‘great design’.
Additional DFP facilitation services include case management and the newly announced Unlocking Strategic Sites pathway for projects that require a planning scheme amendment.
We’ve delivered multiple permit approvals through the DFP pathway, with a growing number of projects progressing successfully through the program.
Hotham Airport – Clause 53.22 (Category 2)
We delivered planning, urban design and transport services for Grollo Group, recently securing approval for key worker accommodation at Hotham Airport addressing shortfalls in lodging for workers in the alpine region, particularly during ski season.
The approved project provides 648 beds within a series of ‘lodges’ designed to meet peak ski season demand, with reduced summer occupancy when bushfire risk is present.
Our team navigated complex siting design, bushfire planning and flora/fauna challenges and established a collaborative approach with the Department of Transport and Planning (DTP) and the Department of Energy, Environment and Climate Action (DEECA) to secure government support. The project gained Category 2 eligibility under Clause 53.22 of the scheme based on ‘group accommodation’ land use and State funding through the Regional Worker Accommodation Fund.
691-693 Burke Road Camberwell – Clause 53.23 (Category 1)
We achieved planning approval through Clause 53.23 for a 14 storey mixed use development in Camberwell Junction – the tallest development permitted within the activity centre, exceeding the discretionary height limit by 16 metres and setting a new standard for design and scale.
The development comprises three levels of basement, ground level retail and hospitality, two levels of commercial office space, and 57 apartments across levels three to fourteen.
The application qualified under Category 1 for Clause 53.23, with the residential component surpassing the $50 million threshold, and the developer providing a cash contribution to affordable housing.
Read more: 691-693 Burke Road – Ratio
712-716 High Street, Thornbury – Clause 53.23 (Category 3)
Under the more discretionary Category 3 pathway, we secured a permit for this Austin Maynard Architects-designed 7-storey mixed-use development in Thornbury for Antipodean Land Developments. The project comprises ground-level residential, commercial/retail/food and drink tenancies, and residential apartments.
While falling short of the $50 million Category 1 threshold, the project qualified under Category 3 through design excellence with provision of affordable housing contribution and emphasis on sustainability, liveability and architectural excellence.
As the Development Facilitation Program continues providing a valuable pathway for eligible projects, we consider the lessons learned and implications for future projects and the Victorian Planning system.
The pathway’s key advantage remains the added certainty provided through no-third party appeal rights or VCAT. This significantly reduces the post-lodgement uncertainty applicants frequently face under a standard Council process, where contested matters can escalate to a Council meeting or VCAT, representing substantial burden in both time and cost.
Our experience shows the DFP model requires the heavy lifting of a project upfront. This includes early technical assessments and fully engaging a suite of subconsultants to maximise early discussions with DFP before eligibility confirmation. While acceptance into the pathway requires a higher level of initial investment, including the preparation of a comprehensive suite of consultant reports, this investment replaces the traditional unpredictability associated with appeals, political risk, and late-stage design changes.
As the pathway evolves and permits are issued, we expect clarity around eligibility for the more discretionary pathways, such as 53.23-Category 3. Projects like 712-716 High Street, Thornbury provide benchmarks of the design excellence required.
If you are seeking further information or considering whether the Development Facilitation Program is suitable for your project, we can guide you through the pathway and provide tailored advice. Contact us at mail@ratio.com.au
